- Project prices slide on need-based demand
- IF price trends vary amid production cuts
India’s trade-level blast furnace (BF) rebar prices continued their downtrend w-o-w, weighed down by sluggish domestic demand and muted market activity due to the onset of the monsoon. Suppliers expressed worry regarding the continuous free-fall in prices, and buyers also remained cautious, waiting for prices to stabilise.
Trade-level BF rebar prices declined by INR 700/tonne (t) ($8/t) w-o-w to INR 49,200/t ($573/t) exy-Mumbai, as per BigMint’s assessment on 11 July 2025. Prices are exclusive of GST at 18%.
In the projects segment, prices declined w-o-w to INR 46,500-47,500/t ($542-553/t) FOR, owing to weak market sentiments. Buyers stayed on the sidelines, purchasing only for urgent requirements amid the continuous drop in prices.
Update on projects
- GR Infraprojects Ltd. announced the appointed date of 1 July 2025 for its INR 1,248.37 crore greenfield highway project under Bharatmala Pariyojana in Bihar. The 33.5 km, 6-lane stretch will be constructed under the hybrid annuity mode within 730 days.
- Rail Vikas Nigam Ltd. (RVNL) has received a letter of acceptance from the Southern Railways for upgrading the electric traction system between Salem and Podanur junctions. The project aims to enhance capacity to meet a 3,000-metric tonne (MT) loading target in the region.
Factors behind market dynamics
1. IF rebar prices show mixed trends w-o-w: IF rebar trade prices showed mixed trends w-o-w across markets amid limited trade activities. Prices were stable w-o-w at INR 43,000/t ($501/t) exw-Mumbai as on 11 July.
Inventories stayed elevated at 12-15 days, keeping market sentiment weak. There were production cuts in some regions due to maintenance shutdowns.
Sponge iron prices increased by around INR 1,000/t ($12/t) w-o-w in key markets owing to maintenance taken by mills, which further supported finished steel prices.
The BF-IF rebar price gap narrowed w-o-w to around INR 5,500-6,000/t ($64-70/t) in Mumbai. IF rebars hold a dominant 65-70% market share in India.
2. Raw material prices rise w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index edged up by INR 50/t ($1/t) w-o-w to INR 4,850/t ($57/t) on 5 July. Iron ore prices remained largely stable this week, supported by moderate trading activity across both fines and lump categories. Market participants reported that, primarily, steelmakers are engaging in trades, as high-grade material availability is still a challenge during the ongoing monsoon season.
Australian premium hard coking coal (PHCC) prices rose by $3/t w-o-w to $192/t CNF Paradip.
Outlook
Market participants expect prices to continue their downtrend. They are waiting for prices to stabilise in the coming days.
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